The government does not intend to demand the resignation of Alfred Mifsud as deputy governor of the Central Bank because that would amount to interference in an independent institution, Finance Minister Edward Scicluna said in parliament this evening.

He said this position had been taken on the advice of the European Central Bank, which had also consulted its lawyers.

Their advice was that the deputy governor's removal or otherwise was up to the Central Bank itself, through the current governor or the new one, on the basis of the evidence available to them.

Prof Scicluna was speaking after questions by Opposition leader Simon Busuttil and other MPs.

Asked by Dr Busuttil whether he was personally comfortable with Mr Mifsud occupying the post of deputy governor despite the serious allegations about him, Prof Scicluna said that was irrelevant.

Clearly, he said, the government could not demand the deputy governor's resignation from an independent institution. One would only wonder what would happen had the deputy governor been a supporter of the opposition and the government moved to remove him on the basis of allegations made against him.

He said he hoped to be in a position to announce the name of the new governor of the Central Bank in the coming days.  

Asked also about his position about harm caused to Malta when a fellow minister was mentioned in the Panama Papers, Prof Scicluna said the most serious harm was caused when something took place in Malta itself and not when an action was made in some other jurisdiction, be it Panama, the Cayman Islands or elsewhere.